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ROLE OF PUBLIC

PROCUREMENT

IN SERVICE DELIVERY,

CURRENT ISSUES AND

THEIR RESOLUTION

Department of National Properties Ministry of Finance, Bhutan

Karma Wangdi

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Profile of Bhutan

Population: 797,765 (2016) - National Housing and

Population Census GDP : USD 2.237 Billion (2016)

PPP: USD 2751.20 (2016) Forest Coverage : 72% (60 percent Constitution)

Overall Literacy Rate : 59.5%

GDP Growth Rate : 6.2% (2016)

Government: Democratic Constitutional Monarchy

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CONTENT

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Public Procurement and

Service Delivery- Recent

Activities & Achievements

(2016, 2017)

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03 Issues, Challenges, Solutions

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Way Forward

Action Plan – Short term

and Long term

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Major Role of Public Procurement

PUBLIC PROCUREMENT

Social

responsibilities Economic

contribution

Innovation Eco-friendly

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Economic

Contribution

Government is the

biggest single source of

business with the

private business

Expanding private

business leads to

greater employment

opportunities

Establishes reliable

supply chain in the

domestic market.

Challenges

Unequal development due to

uneven distribution of

population

Rugged terrain and

inaccessible areas

Solutions

PRR allows procurement

within the locality restricting

other established suppliers

to take away their share of

business

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SOCIAL RESPONSIBIITIES

Specially in

construction,

priority is placed

on preservation

of culture,

traditional design

and materials

–Difficult to

improvise but

doable with

modern materials

to mould as per

design.

–Not much potential

business to invest

at one go due to

capital intensive

CHALLENGES –Domestic manufacture

of concrete bricks, cement blocks,

–Domestic preference to SME, Business Association of Women of Bhutan,

–Consistent monitoring of Labour Act 2007 lays down financial, safety, human rights etc.

SOLUTION

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Eco-Friendly Any production in Bhutan is strictly monitored by

oversight bodies-cement, Achieved a global recognition as the first Carbon

Neutral Country, Criteria are set highlighting the environmental friendly

procurement.

Challenges – Import driven country for any materials,

household items, equipments etc. – Limited Acts and policies to really make an

impact of such procurement.

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SOLUTION

o Switch Asia EU Project initiated Green Public

Procurement of Bhutan (GPPB) recommending 10 recommendations to the Royal Government of Bhutan. 7 out of 10 recommendations are on sustainable, eco friendly, waste minimization and proper disposal.

o Environment Assessment Act of Bhutan (2000),

Waste Prevention and Management Act (2009), Mining Act (1995).

Eco-Friendly

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Innovation

No country can afford to lag behind at this time.

Race for “Innovation” is imperative.

Looking for most effective and efficient ways to

reduce cost and waste.

Royal Government introduced subsidized LED bulb

distribution from state owned outlet across the

country.

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Issues, Challenges & Solutions

The Issues, Challenges and Solutions is done through

PESTLE Analysis

Politically sets national targets based on their priority massively impacting the procurement of works, goods and service to achieve their targets. Procurement officials need to keep abreast of such move to minimize the risk.

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Issues, Challenges & Solutions

Economically growing as the third fastest economy in the orld 11.1 per e t as per World Ba k’s Glo al Prospe t.

Huge amount is invested in hydro power and road construction to boost the economy. Procurement department is mandated to plan and procure more efficiently and effectively.

Socially and culturally Bhutan is very conservative. However with the onslaught on modernization it is proving to be diffi ult to ai tai . It is go er e t’s poli y to pro ure o ly socially acceptable products and culturally blending with tradition.

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Issues, Challenges & Solutions

Technologically advancing to keep up with the rest of the world

taking advantage of modern technology in construction, health

service and information dissemination. Procurement

Department is keeping the pace by moving to e-procurement.

Legally strong in dispensing fair and justice whenever there is

procurement related litigation. However it is challenged by

absence of procurement policy and act. Procurement

department is drafting policy and act.

Environmentally mandated to maintain 60% under forest cover

at all time as enshrined in the constitution. Government initiated

green and sustainable procurement banning CFC import.

Procurement Department is constantly working on such move.

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Recent Activities & Achievements

e-GP System

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Recent Activities & Achievements

• Long term capacity development of Procurement Professional

Development - CIPS

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ACTION PLAN

ACTION SHORT

TERM

MEDIUM

TERM

LONG

TERM

1. Annual Procurement Plan Implementing

2. Drafting of Policy 2-3 Years

3. Procurement Act 3-5 Years

4. National Procurement Council 2-5 Years

5. Capacity Development :

Awareness

CONTINUOUS PROCESS

6. Professional Capacity

Development

3-5 Years

7. R&D Procurement System CONTINUOUS PROCESS

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